Goldman Executive Who Made Millions on Housing Bust Now Wants to Make Millions on Housing Un-Bust

It’s a shame Occupy Wall Street is no longer the force it used to be, because the movement could have had a field day with the story of DonaldMullen.

Mullen, a former Goldman Sachs mortgage executive who helped design the trades that allowed Goldman to profit from the collapse of the housing bubble, is raising money for a hedge fund that will buy up foreclosed homes and rent them out, Reutersreports.

Let’s go over this a little more slowly, because it is actually sort ofcrazy:

In the years leading up to the financial crisis, a team of mortgage executives and traders at Goldman Sachs predicted that the housing market was in trouble. So they designed a massive bet against it, using a bunch of esoteric financial instruments known as collateralized debt obligations that would pay off in the event that housing prices fell and homeowners defaulted on theirmortgages.

That bet, now known colloquially as “the big short,” allowed Goldman and its clients (including hedge-fund managers like John Paulson) to avoid losses and make billions of dollars when the housing market collapsed, at the same time that people around the country lost their homes toforeclosure.

Now, the guy who led that team — the exact same guy! — is starting a hedge fund that will make money by buying up foreclosed-upon houses and renting them out forprofit.

To make matters worse, Mullen, whose more recent activities have involved battling Alec Baldwin at Hamptons art auctions, was one of the Goldmanites whose e-mails were used by a congressional subcommittee to show the extent of Goldman’s celebration at the housing market’s collapse. From a 2010 Washington Post article:

In an e-mail sent in the fall of 2007, for example, Goldman executive Donald Mullen predicted a windfall because credit-rating companies had downgraded mortgage-related investments, which caused losses forinvestors.

“Sounds like we will make some serious money,” Mullenwrote.

Goldman has characterized its housing bets as hedges that were designed to mitigate risk, and Mullen was never accused ofwrongdoing.

The good news about Mullen’s new hedge fund — which will buy and rent out “homes that are selling for between $70,000 and $190,000 and mainly in the southeastern and southwestern regions of the United States,” according to Reuters — is that, if the guy who saw the mortgage bust coming in 2007 wants to buy up cheap houses now, it probably means that the housing market is, in fact,recovering.

The bad news, of course, is that a guy whose most famous trade was a successful bet on the full-scale implosion of the housing market is now swooping in to pick up the pieces on the otherend.

The nation’s top intelligence official is illegally withholding a whistleblower complaint, possibly to protect President Donald Trump or senior White House officials, House Intelligence Committee Chairman Adam Schiff alleged Friday.

Schiff issued a subpoena for the complaint, accusing acting Director of National Intelligence Joseph Maguire of taking extraordinary steps to withhold the complaint from Congress, even after the intel community’s inspector general characterized the complaint as credible and of “urgent concern.”

“A Director of National Intelligence has never prevented a properly submitted whistleblower complaint that the [inspector general] determined to be credible and urgent from being provided to the congressional intelligence committees. Never,” Schiff said in a statement. “This raises serious concerns about whether White House, Department of Justice or other executive branch officials are trying to prevent a legitimate whistleblower complaint from reaching its intended recipient, the Congress, in order to cover up serious misconduct.”

Schiff indicated that he learned the matter involved “potentially privileged communications by persons outside the Intelligence Community,” raising the specter that it is “being withheld to protect the President or other Administration officials.”

Yemen’s Iran-aligned Houthi group on Saturday attacked two plants at the heart of Saudi Arabia’s oil industry, including the world’s biggest petroleum processing facility, in a strike that three sources said had disrupted output and exports.

Two sources close to the matter said 5 million barrels per day of crude production had been impacted — close to half of the kingdom’s output or 5% of global oil supply.

The pre-dawn drone attack on the Saudi Aramco facilities set off several fires, although the kingdom, the world’s largest oil exporter, later said these were brought under control.

Candidates for the Democratic presidential nomination are sprinting from coast to coast in search of campaign donations over the next 18 days, moving urgently to stockpile cash for their big fall push — and to avoid a death spiral that a weak third-quarter fundraising tally might prompt. …

Still, Democratic donors have expressed nervousness in recent weeks that some presidential hopefuls could post disappointing totals, compounding the candidates’ broader struggles. July and August tend to be slow for fundraising, with many people on vacation and tuned out of politics. The large and unpredictably fluid field also has made it difficult for donors to commit to a candidate.

“The third quarter number, from a finance standpoint, will define the narrative throughout the course of the fall, when these questions about viability for so many of the candidates are so real, especially in the second and third tiers,” said Rufus Gifford, the finance director for Barack Obama’s 2012 reelection campaignand a donor to at least three candidates so far this year.

While MIT engages in damage control following revelations the university’s Media Lab accepted millions of dollars in funding from Jeffrey Epstein, a renowned computer scientist at the university has fanned the flames by apparently going out of his way to defend the accused sex trafficker—and child pornography in general.

Richard Stallman has been hailed as one of the most influential computer scientists around today and honored with a slew of awards and honorary doctorates, but his eminence in the academic computer science community came into question Friday afternoon when purportedly leaked email excerpts showed him suggesting one of Epstein’s alleged victims was “entirely willing.”

An MIT engineering alumna, Selam Jie Gano, published a blog post calling for Stallman’s removal from the university in light of his comments, along with excerpts from the email in which Stallman appeared to defend both Epstein and Marvin Minsky, a lauded cognitive scientist and founder of MIT’s Artificial Intelligence Lab who was accused of assaulting Virginia Giuffre.

Representative Alexandria Ocasio-Cortez, the young liberal icon from New York, has endorsed Senator Ed Markey’s reelection bid next year, as Representative Joe Kennedy III considers challenging Markey for what promises to be the nation’s most competitive congressional primary.

Ocasio-Cortez and Markey have worked together as the primary sponsors of the Green New Deal, the signature legislative issue for both lawmakers.

ABC’s coverage of the 10-candidate forum draws the largest preliminary ratings for any debate so far this cycle.

ABC and Univision scored strong ratings Thursday with their coverage of the third Democratic presidential primary debate.

The debate, featuring 10 candidates and current frontrunners Joe Biden, Bernie Sanders and Elizabeth Warren sharing the stage for the first time, drew a 10.0 household rating in Nielsen’s 56 metered markets. That’s 23 percent higher than the 8.1 NBC got for part two of the first debate on June 27, but about 25 percent lower than combined metered-market average for NBC and MSNBC. That telecast ended up with 18.1 million viewers across NBC, MSNBC and Telemundo.

Beginning speech to Concerned Women of America, @SecPompeo says “this is such a beautiful hotel. The guy who owns it must gonna be successful along the way,” he says, without mentioning @realDonaldTrump by name. “That was for the Washington Post,” he says of his remark. pic.twitter.com/vPYp9vYE9y

Child care, a key issue for many Americans, is getting little attention at the debates

Millions of Americans struggle to find decent, affordable child care every year. But when Sen. Elizabeth Warren (D-Mass.) tried to bring up the subject during Thursday’s Democratic debate, in response to a question about education, a moderator cut her off.

“Start with our babies by providing universal child care for every baby age 0 to 5, universal pre-K for every 3-year-old and 4-year-old in this country,” Warren said, just getting on a roll when ABC moderator Linsey Davis interrupted. “Thank you, senator,” Davis said.

Davis was just following the rules: Warren’s time for the response had lapsed. But the moment was a perfect metaphor for the attention child care and other work-family issues have gotten in these debates ― or, more accurately, the attention they have not gotten in these debates.

After the debate, Castro is being criticized for his kamikaze attack on Biden, while journalists are toiling away trying to transcribe Biden’s “record player” response

Biden was asked whether he still held these attitudes: “What responsibility do you think that Americans need to take to repair the legacy of slavery in our country?” What follows is a transcript of his rambling answer (I have omitted nothing), which for some reason includes references to record players and Venezuela:

Well, they have to deal with the — look, there’s institutional segregation in this country. From the time I got involved, I started dealing with that. Redlining banks, making sure we are in a position where — look, you talk about education. I propose is we take the very poor schools, triple the amount of money we spend from $15 to $45 billion a year. Give every single teacher a raise to the $60,000 level.

Number two, make sure that we bring in to help the teachers deal with the problems that come from home. The problems that come from home, we have one school psychologist for every 1,500 kids in America today. It’s crazy. The teachers are — I’m married to a teacher, my deceased wife is a teacher. They have every problem coming to them. Make sure that every single child does, in fact, have 3, 4 and 5-year-olds go to school. Not day care, school.

Social workers help parents deal with how to raise their children. It’s not that they don’t want to help, they don’t know what to play the radio, make sure the television — excuse me, make sure you have the record player on at night, the — make sure that kids hear words, a kid coming from a very poor school — a very poor background will hear 4 million words fewer spoken by the time we get there.